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really building on the reports of the Commission and Task Force, but the Strategic Plan is
also building on this vision statement. That is why these came out first because this is the
objective, and they have to be implemented in a strategic way. He said that he
appreciated what Mr. Williams said, and he takes that charge seriously.

      Mr. Reed said that PR 5 had a motion and a second. He called for a vote, and the
motion carried without dissent. (See PR 5 at the end of the Minutes.)

      H.    Academic Affairs Committee Report

      Mr. Reed said that AACR 1 was on the consent agenda. He asked Ms. Sparks,
Chairperson of the Academic Affairs Committee, if she had anything to report to the
Board.

      Ms. Sparks said that AACR 1, Candidates for Degrees in the Community College
System, was the only item for the Committee's consideration. Since it was on the
consent agenda, a Committee meeting was not scheduled. This, however, is not to lessen
the importance of the action.

      I.    Approval of Lease (FCR 1')

      Mr. Chellgren, Chairperson of the Finance Committee, reported that the
Committee met that morning and had a brief meeting. It was one of the lighter agendas
that they have seen for awhile. He mentioned the very important agenda of the recent
special called meeting that changed the tuition and housing rates.

      Mr. Chellgren said that FCR 1 recommends approval of an important lease to
provide additional housing for students. This will make an additional 385 spaces and
take over the entire complex on Red Mile Road that is known as University Commons.
This will provide almost 119,000 square feet of space. The annual lease rate is some
$1,546,000.00. The demand for student housing, both from returning students and
anticipated demand from new students, is extremely strong. It is arguably, perhaps, the
strongest they have seen, and as a result, the University administration is trying to get
ahead of the program and be able to provide these additional spaces. The current space
inventory is about 5500 spaces. This would add almost 400 - not quite an additional 8%
to that inventory of available spaces. These units are considered particularly desirable.
While these units have a premium price, the housing and dining operations are essentially
a break-even operation. The Committee had a nice, thorough discussion, and the
majority of the Board was at the Finance Committee. He moved the adoption of FCR 1.
Ms. Wilson seconded the motion, and it passed without dissent. (See FCR 1 at the end of
the Minutes.)